SEC to launch info campaign against investment scams

In line with its efforts to increase investor protection, the Securities and Exchange Commission (SEC) intends to produce educational videos and movie/TV-ready investor alert infomercials that would focus on the prevention of investment scams and fraud.

SEC Chairperson Lilia R. Bautista said the project will be in joint venture with the Philippine Stock Exchange and the Investment Houses Association of the Philippines (IHAP), the umbrella organization of investment houses in the country.

Bautista is hoping that through these infomercials, the public would be more cautious about investing their hard-earned money or life-time savings. "A lot of people are being defrauded as a result of the lack of knowledge on the basics of investing. We want to stop this. With sufficient information, we feel that people will be more careful about where they put their money," she said.

In these difficult times, fraudulent investment schemes usually emerge as promoters prey on vulnerable individuals who would like to earn high return on their investment.

Most investment scams involve small amounts of money in the hundreds or thousands of pesos.

Countless people have been victimized by investment scams that have become alarmingly rampant in the country. The success of get-rich quick schemes and the perception that anyone can get rich are making the job of scam artists even easier. And investors can find it difficult to differentiate between companies with legitimate potential and scams designed to part them from their money.

Thus, the SEC has vowed to increase public awareness on investment scams and swindles to avoid the repeat of the Multitel and Glasgow investment fiascos.

These firms offered unbelievably high interest rates of as much as 15 percent for a minimum placement of P50,000 over a three or six-month period. Investors of Multitel are now in a bind as to when they could get their money back.

"Along with determined enforcement, we will continue to generate confidence in the Philippine capital market through investor education and assistance," Bautista said.

Web-based information materials and education tools for investors will continue to be made available on SEC’s website, covering all matters pertaining to the agency and the capital market as well as useful information on scams and swindles, Bautista said.

The SEC, together with other securities and banking regulators, will continue to conduct nationwide investor information seminars started last year. The seminars are focused on the do’s and don’ts of investing.

Bautista said advice will also be given on how to recognize scams, avoid being swindled and how to report it to the corporate regulators. – Zinna dela Peña